PT Pertamina Malaysia Exploration Production (PMEP), with its partners, successfully won the exploration block SK510 auction through the Malaysia Bid Round ("MBR") 2023. MBR is a series of auction activities held annually by Malaysia Petroleum Management ("MPM") PETRONAS, the body responsible for oil and gas resources in Malaysia.
The signing ceremony in Kuala Lumpur on January 23, 2024, was led by the President Director of PMEP, Fuji Koesumadewi. The event was also attended by the Director of Strategic Planning and Business Development of PT Pertamina Hulu Energi ("PHE"), Danar Dojoadhi, along with Executive Vice President and Chief Executive Officer of Upstream of PETRONAS, Datuk Adif Zulkifli, and MPM PETRONAS' Senior Vice President, Datuk Ir. Bacho Pilong.
The Participating Interest (PI) holders in Block SK510 include PETRONAS Carigali Sdn. Bhd., as the operator with a 40% PI, PMEP, and INPEX Malaysia E&P SK510 Sdn. Bhd., with 25% PI, and Petroleum Sarawak Exploration & Production Sdn. Bhd. with the remaining 10% PI.
Covering an area of 1,864 km2, Block SK510 is located offshore Sarawak, Malaysia, and is part of the PHE upstream's asset management portfolio as the Pertamina Upstream Subholding. This acquisition brings the total number of blocks under PMEP's management to 6. PMEP, a subsidiary of PT Pertamina Internasional Eksplorasi dan Produksi (PIEP), affiliated with PHE, manages oil and gas exploration and production activities in the Sabah and Sarawak regions of Malaysia under Production Sharing Contract (PSC) agreements. PMEP holds Participating Interest in three production blocks – SK309 (25.5%), Block SK311 (25.5%), and Block K (24%), two exploration blocks – SK510 (25%), SK 314A (25.5%), and one development and exploration block—Block H (18%, except for the Rotan Field – 24%).
Danar Dojoadhi, Director of Strategic Planning and Business Development of PHE, explained that Pertamina continues to strengthen its existing advantages by seizing opportunities that can support its business growth through implementing good Environmental, Social, and Governance (ESG) principles. "We believe that managing Block SK510 can strengthen PHE's footprint in Malaysia, contributing to the company's target of enhancing oil and gas resources growth through overseas exploration assets," Danar emphasized.
Furthermore, Danar elaborated that expanding the work area through new exploration blocks, domestically and internationally, is crucial for sustaining fossil energy resources' continuity. PHE has also completed the acquisition of oil and gas blocks in various work areas, including Peri Mahakam & Bunga in the East Indonesia region, East Natuna at the Indonesia-Malaysia-Vietnam border, and Masela in the Maluku region.
Datuk Ir. Bacho stated, "We have had a long-term relationship with Pertamina, even before the establishment of PETRONAS 50 years ago. Today, I am pleased that Pertamina continues to expand its E&P portfolio in Malaysia. I hope this joint effort continues to maximize the untapped potential in these blocks to support the energy transition by building a more sustainable upstream industry."
PHE has been a member of the United Nations Global Compact (UNGC) since June 2022 and committed to the Ten Universal Principles of the UNGC in its strategy and operations in implementing ESG aspects. Supporting good Governance aspects, PHE is also committed to Zero Tolerance for Bribery, ensuring fraud prevention and keeping the company free from bribery. It includes the Anti-Bribery Management System (ABMS) implementation standardized under ISO 37001:2016.
PHE continues to develop prudent and excellent operational management domestically and internationally in a professional manner to achieve its goal of being an Environmentally Friendly, Socially Responsible, and Good Governance world-class oil and gas company.